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Morrisons Tests New High-End C-Store Concept

Written by RetailWire Staff

Before Morrisons bought Safeway in 2003, it had 119 stores in the north of England. After the purchase, Morrisons extended to the length of the country (plus Scotland), added 480 stores and became the U.K.'s fourth largest supermarket. At the time, The Guardian pointed out that "Safeway is an upmarket retailer, while Morrisons operates on a pile-it-high and sell-it-cheap policy." The purchase of Safeway increased Morrisons' market share from 3.2 percent to 12.4 percent.

As recent stories (and RetailWire discussions) show, further expansion is now on the front burner.

The Daily Telegraph reports that Chief Executive Dalton Philips expects to begin "a trial of a new convenience format in the first half of next year" based on "past success that was built on being different, in the offer we bring to customers, and this will continue in any new areas for business development."

Additional detail is provided by the Yorkshire Post, which covers the target area.

The first of three M Local outlets, it says, will open "in the affluent town of Ilkley as part of a drive to attract a more upmarket audience." Described as "one of Yorkshire's most wealthy areas," the idea is to "test the concept with a wealthier audience than the average Morrisons store attracts."

"Many of the group's upmarket ranges" will be stocked and the store "designed to appeal to commuters coming home in the evening who want to buy something for dinner" offering a focus on fresh food.

Morrisons is keen, however, to ensure its convenience stores appeal to a wide demographic. Julian Bailey, head of media relations, told the Yorkshire Post, "We think there is a gap in the market for a convenience store operator that sells fresh food well. At the moment there isn't the variety and quality of fresh food that people are looking for."

Just-food deems the convenience sector, "fast growing ... ripe for growth -- and the leading players are scrambling to build a presence in the channel" but adds, "some industry watchers" reckon online grocery could be considered more convenient. A story likely to continue giving.

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